Frequently Asked Questions: Micro E-mini Equity Index Futures

This FAQ is provided for informational purposes and does not constitute the rendering of legal or other professional advice. Individuals and entities should in all cases seek advice from their independent legal and professional advisors regarding the matters discussed below.

Launch

When will the Micro E-mini products be listed for trading?

CME Group will launch the following futures contracts in May 2019.*

  • Micro E-mini S&P 500 futures
  • Micro E-mini Nasdaq-100 futures
  • Micro E-mini Dow futures
  • Micro E-mini Russell 2000 futures

Why is CME Group choosing to launch these products?

Since the launch of the E-mini product suite in 1997, the notional value of these contracts has increased dramatically. As a reference, see the price chart of the S&P 500 since its launch in 1997.

The notional value of the E-mini S&P 500 futures contract has increased from ~$47K on the date that it launched to ~$125K on December 31, 2018. The amount of capital needed to access the futures market has become too burdensome for many individual traders. To make our more market accessible to all, CME will launch the Micro E-mini suite of futures, which feature multipliers 1/10 the size of their E-mini counterparts (i.e. $5 multiplier for Micro E-mini S&P 500 futures contract vs. $50 for E-mini S&P 500 (ES) futures).

What are the differences between the currently listed E-mini products and the recently announced Micro E-mini products?

Index Family

Micro E-mini Multiplier

E-mini Multiplier

S&P 500

$5

$50

Nasdaq-100

$2

$20

Dow Jones

$0.50

$5

Russell 2000

$5

$50

Under which DCM will these contracts be listed

Each of the contracts that are being listed will remain under the same DCM as their E-mini counterparties. A table is shown below:

Contract

DCM

Micro E-mini S&P 500 futures

CME

Micro E-mini Nasdaq-100 futures

CME

Micro E-mini Dow futures

CBOT

Micro E-mini Russell 2000 futures

CME


Product Details

What are the contract specifications?

Micro E-mini futures will be listed on the customary U.S. Equity Index futures cycle – there will be five concurrent futures that expire against the opening index value on the third Friday of March, June, September and December. The tick increments will follow their E-mini counterparts as follows:

Index Futures Contract Specs

Outright

Calendar Spread

Micro E-mini S&P 500 futures

0.25 Index points= $1.25

0.05 index points= $0.25

Micro E-mini Nasdaq-100 futures

0.25 Index points= $0.50

 

0.05 index points= $0.10

Micro E-mini Dow futures

1.00 Index points= $0.50

1.00 index points= $0.50

Micro E-mini Russell 2000 futures

0.10 Index points= $0.50

0.05 index points= $0.25

What are the codes for these products?

Index Futures Contracts

Underlying Index (Bloomberg)

CME Globex

Bloomberg Front Month

Thomson Reuters Front Month

Micro E-mini S&P 500 Futures

SPX

MES

Tbd

Tbd

Micro E-mini Nasdaq-100 Futures

NDX

MNQ

Tbd

Tbd

Micro E-mini Dow Futures

DJIA

MYM

Tbd

Tbd

Micro E-mini Russell 2000 Futures

RTY

M2K

Tbd

Tbd

How many contracts will be listed at a given time?

There will be five months listed in the March Quarterly Cycle (Mar, Jun, Sep, Dec) for S&P 500, Nasdaq-100 and Russell 2000 Micro E-mini futures.

Dow Micro E-mini futures will list four months.

What are the trading hours on CME Globex and ClearPort?

Sunday – Friday 6:00 p.m. – 5:00 p.m. ET with a trading halt from 4:15 p.m. – 4:30 p.m. ET

How are the daily settlement price Micro E-mini futures determined?

Daily settlement for Micro E-mini futures are based on the 30-second volume-weighted average price (VWAP) of CME Globex trades between 4:14:30 p.m. and 4:15:00 p.m. ET of their E-mini counterpart.

How are final settlement prices of the futures determined?

The Micro E-mini will have the same SOQ value as the corresponding E-mini contract on final settlement day. Final settlement value is based on the Special Opening Quotation (SOQ) on the third Friday of the contract month. The SOQ is based on the opening price of each component stock in the relative index, regardless of when those stocks open.

Are these futures contracts eligible for block trading or BTIC?

No, Micro E-mini Equity Index futures contracts will not be block or BTIC trading eligible.


Margin Details

What are the margin requirements for Micro E-mini Index futures?

Margins are indicative of their E-mini counterparts and the below estimates are based on current market conditions and are subject to change.

 

Margin

Margin as Percent of Notional Value

 

 

Initial

Maintenance

Initial

Maintenance or Hedge

Futures Price

Multiplier

Notional Value

MES

$660

$600

4.74%

4.31%

$2,786

$5

$13,930

MNQ

$836

$760

5.86%

5.33%

$7,130

$2

$14,260

MYM

$649

$590

4.67%

4.25%

$27,781

$0.50

$13,891

MRT

$391

$355

4.97%

4.51%

$1,574

$5

$7,870

What are the available margin credits for offsetting positions between the Micro E-mini Index futures and CME Group’s major U.S. benchmark index futures?

Margins credits are indicative of their E-mini counterparts and the below estimates are based on current market conditions and are subject to change. See all other Equity index margin offsets here.

 

Micro E-mini Equity Index Futures Margin offsets

 

MES

MNQ

MYM

MRT

MES

x

1:1 (75%)

1:6 (85%)

2:15 (80%)

MNQ

1:1 (75%)

x

3:5 (55%)

2:3 (70%)

MYM

6:1 (85%)

5:3 (55%)

x

2:3 (70%)

MRT

15:2 (80%)

3:2 (70%)

3:2 (70%)

x

Learn More about Margins:

Are Micro E-mini products fungible with their E-mini counterparts? Can they be offset?

Yes, Micro E-mini futures are offset eligible versus their E-mini counterparts at 10:1 ratio. This can only be applied to offsetting positions. Request can be made by your clearing broker directly to CME Clearing.


Additional Information

Will there be on-screen market makers for the Micro E-mini products?

CME Group plans to introduce a market maker program to assure continuous two-sided markets are quoted on-screen throughout the trading day starting on launch date.

How can I see prices for Micro E-mini Index futures?

Delayed quotes will be available online on the CME Group website. You can also access quotes through major quote vendors.

How can I get access to CME Globex?

To access CME Globex, you must have a relationship with a CME Clearing Member Firm.

Learn more about connecting to CME Globex

What trade matching algorithm will be used for the Micro E-mini futures on Globex?

Micro E-mini futures will use FIFO (First in, first out) algorithm, identical to their E-mini counterparts.

Are there circuit breakers on Micro E-mini products?

CME Group U.S. Equity Index price limits (and corresponding CME and CBOT rules) are designed to coordinate with circuit breakers provisions as applied by the New York Stock Exchange (NYSE). Micro E-mini contracts will follow the same rules as their E-mini counterparts.

  • 7%, 13%, and 20% price limits are applied to the futures fixing price and are effective from 8:30 a.m. CT – 3:00 p.m. CT. Mondays through Fridays. This only applies to the downside.
  • 5% up-and-down limits are effective 5:00 p.m. - 8:30 a.m. CT. Sundays through Fridays; and 3:00 p.m. - 4:00 p.m. CT, Mondays through Fridays. Between 3:00 p.m. - 4:00 p.m. the 5% price limit will not be allowed to breach the 20% daily limit.

Learn more about connecting to Price Limits

Where can I find more information on Micro E-mini products?

Get the latest information on Micro E-mini products.

You can fill out the form on this page to stay up-to-date on Micro E-mini product updates.


*Subject to regulatory approval

**Pending approval by the U.S. Commodity Futures Trading Commission (CFTC)


Neither futures trading nor swaps trading are suitable for all investors, and each involves the risk of loss. Swaps trading should only be undertaken by investors who are Eligible Contract Participants (ECPs) within the meaning of Section 1a(18) of the Commodity Exchange Act. Futures and swaps each are leveraged investments and, because only a percentage of a contract’s value is required to trade, it is possible to lose more than the amount of money deposited for either a futures or swaps position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles and only a portion of those funds should be devoted to any one trade because traders cannot expect to profit on every trade.

CME Group, the Globe Logo, CME, Globex, E-Mini, CME Direct, CME DataMine and Chicago Mercantile Exchange are trademarks of Chicago Mercantile Exchange Inc. CBOT is a trademark of the Board of Trade of the City of Chicago, Inc. NYMEX is a trademark of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other trademarks are the property of their respective owners.

The information within this communication has been compiled by CME Group for general purposes only. CME Group assumes no responsibility for any errors or omissions. Additionally, all examples in this communication are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. All matters pertaining to rules and specifications herein are made subject to and superseded by official CME, CBOT, NYMEX and COMEX rules. Current rules should be consulted in all cases concerning contract specifications.

Copyright © 2019 CME Group Inc. All rights reserved

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More about Micro E-mini Futures

Get more information about the Micro E-mini futures contracts at CME Group.

Learn More